Interest rates on PPF, NSC slashed
However, interest rates on savings deposit and one-year time deposit was left unchanged.
The revised rates will be effective from April 1, 2013.
Based on the decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), the interest rates for small saving schemes are to be notified every financial year, before 1st April of that year.
A Public Provident Fund (PPF) account is the most tax efficient vehicle launched by government of India. Investments made under this are deductible under Section 80C and interest earned is also tax-free.
|REVISION OF INTEREST RATES|
|Scheme||Rate of Interest w.e.f. 01.04.2012||Rate of Interest w.e.f. 01.04.2013|
|1 Year Time Deposit||8.2||8.2|
|2 Year Time Deposit||8.3||8.2|
|3 Year Time Deposit||8.4||8.3|
|5 Year Time Deposit||8.5||8.4|
|5 Year Recurring Deposit||8.4||8.3|
|5 Year SCSS||9.3||9.2|
|5 Year MIS||8.5||8.4|
|5 Year NSC||8.6||8.5|
|10 Year NSC||8.9||8.8|